For those investors looking for a potential, safe and secure financial vehicle anticipated for good yields in the near future, CHIE ETF is just the right exposure.
Being part of the BRIC Nations, the energy sector in China has a very high potential, and influential strength as the economy influences 50% of the growth rate of the world. A great leader of the global economy, China's energy sector consists of energy production and energy distribution.
The GDP growth rate of China has reached a state of stabilization. The strong influences of the political scenario which had set up policies for the restructuring of the economy had been fruitful. The mammoth populations of the economy and its workforce have been supportive to the hunger for labor force induced by the manufacturing sectors and the industrial sector, which has always had an impact on the demand for energy. On the other hand the urbanization trend in the Chinese economy has increased the demand for the construction Industry.
Urbanization always leads to an increase in the demand for energy, as the housing facilities grow along with the road networking; power becomes the most desired commodity for surviving the turmoil related to the change in trends.
An approximate 18% of global trade is being taken up by this dragon economy; it simply states the recent surge in its economic power growth rates.
The economy is greatly dependable on coal as their largest caterers for power. The only hitch in this consumption level is the global issue of a Green economy. 2011 and 2015 have been stretched as an oriental programme of strategy for changing the trend from fossil fuels to non-fossil fuels. CERS (China Energy Research Society) has expressed its urgency to promote the clean green forms of energy. Stressing on the new Renewable Energy Resources. Solar Power and Wind Energy are now putting their best foot forward and are working as an aid towards catering to the energy sectors increasing demand for more power supply. The alternative energy sector is increasingly gaining popularity and has developed a bullish environment among the other energy related funds present in the same basket of financial vehicles.
On further grounds, funds are being pumped into the mining and exploration of Coal reserves to furnish to the demand of this form of requirement.
Another factor that is increasing the value of the investments in this sector of China is the encouragement of the Privatization of the energy sector, grossly leading to a drastic inflow of foreign funds into the economy, basically into the China Energy ETF's
These investments have led to the flourishment of the financial, industrial sector of the economy. The equity of this sector has seen a heavy inflow of cash in the recent fiscal year.
The consumption of oil barrel of the economy per day in China has gladly increased by 2.5 barrels per day owing its increase in consumption levels to the fast rate of growth of urbanization of the economy and a clear increase in the expenditure levels/ power of the middle class of the economy. This states the growth in the welfare of the dragon economy, further intimating the success rates of yields and returns, and attracting potential investors to invest in china energy sector. Emphasis has been laid on a lesser state control and state owned large cap equity, and more on the privatization of the energy sector.
Global X China Energy ETF delivers as per the performance of Solactive China Energy Index. CHIE ETF accounts its top five asset holdings as: state owned CNOOC LTD, HONG KONG & CHINA GAS, PETROCHINA, CHINA PETROLEUM (SINOPEC) and CHINA OILFIELD SER LTD respectively as on 8/16/2013. China Energy ETF follows the benchmark and its +24 securities mostly belonging to the Sino Energy world.